Research Paper

Aggravation or Aggregation:

Implementing Effective Risk Data Solutions (BCBS 239)

About this Paper

A just-completed survey of 27 of the largest global firms by SAS, provides fresh insight on the challenges, business drivers and investment areas being made by these firms to meet the BCBS 239 requirements.

These insights can be used by your firm to benchmark your individual situation and provide the justification to move forward on improvement projects that can help the firm comply with regulations and drive sound decisions based on accurate risk information.

Overview

Global banks and capital markets firms have struggled for years with disparate, siloed risk systems that can make the process of aggregating firm-wide exposures, performing comprehensive stress testing, and producing management information reports of real value for both management and regulators. The Basel Committee on Banking Supervision reported in their now-familiar BCBS 239 report(1) that in the wake of the global financial crisis:"many banks lacked the ability to aggregate risk exposures and identify concentrations quickly and accurately at the bank group level, across business lines and between legal entities. Some banks were unable to manage their risks properly because of weak risk data aggregation capabilities and risk reporting practices."

With the eleven principles of BCBS 239 due for implementation in January 2016, dozens of banks around the world including both G-SIBs(2) and D-SIBs(3) are assessing how they should meet these requirements.

About SAS

SAS is the leader in business analytics software and services, and the largest independent vendor in the business intelligence market. Through innovative solutions, SAS helps customers at more than 70,000 sites improve performance and deliver value by making better decisions faster. Since 1976 SAS has been giving customers around the world THE POWER TO KNOW® .